Endgame for Brazil's role in MINUSTAH in Haiti?

by Alex Sanchez, COHA Research Fellow

Brazil’s leadership in the United Nations Stabilization Mission in Haiti (MINUSTAH) may be coming to its end. The newly-appointed defense minister, Celso Amorin (most recently he served as foreign affairs minister from 2003 to 2011) recently declared to the Brazilian media that he “supports the withdrawal of Brazilian troops from Haiti.”[1] Should this happen, it would be a major departure from the status quo, and would greatly affect MINUSTAH’s operations, as well as jolt Brazil’s role as the Caribbean’s major arbiter of security. Furthermore, Brasilia’s quest for a permanent seat in the United Nations Security Council (UNSC) has been partially based on its role in MINUSTAH as an example of its readiness for a UN seat, which may now be called into question.



Brazil’s role in Haiti



Brasilia racked up a huge leadership role in MINUSTAH, which had as its mission to aid the transitional government that gained control of Haiti (via the UNSC’s resolution 1542) after President Jean-Bertrand Aristide was ousted in early 2004. The mission was controversial at the time and drew heavy criticism from its inception as it was regarded as a type of colonial government by the UN in the wake of Aristide’s abrupt forced departure from power, following major national protests and violence. At the time, there were persistent accusations that the U.S., Canada and France had a role in the Haitian head of state’s ouster.



Brazil has provided the military commanders for MINUSTAH along with a significant number of its forces over the past seven years. Brasilia has reportedly deployed 1,266 army and navy troops to MINUSTAH,[2] but, in the aftermath of the massive January 2010 earthquake that struck Haiti, the Brazilian Congress approved a request to send 1,300 additional troops to the Caribbean country to help with relief operations.[3]



In January 2006, there was a bizarre incident in which MINUSTAH’s commander, Lieutenant General Urano Teixeira da Matta, committed suicide while in his hotel room in Port-au-Prince. In cables published by Wikileaks, Dominican President Leonel Fernandez told State Department Assistant Secretary Patrick Duddy that he suspected that Teixeira had been assassinated by a paramilitary group, possibly led by Guy Philippe, a renowned Haitian cutpurse and rebel leader with a good deal of political clout.[4] MINUSTAH’s current commander is Major General Luiz Eduardo Ramos Pereira, also from Brazil.[5]



According to MINUSTAH’s official website, the mission’s current strength (as of June 30, 2011) totals 12,261 uniformed personnel, not including volunteers as well as international and local civilian personnel. Since its inception, the mission has suffered 164 fatalities, 66 of which were military personnel. Twenty UN Brazilian soldiers were killed in the January 2010 earthquake.[6]



Brazil Inside and Out



Dilma Rousseff’s first year as president of Brazil has been far from ideal as a number of senior and high-profile members of her cabinet have resigned. The list includes: Agriculture Minister Wagner Rossi, Defense Minister Nelson Jobim, Transportation Minister Alfredo Nascimento, as well as President Rousseff’s chief of staff, Antonio Palocci.[7] Should the Brazilian head of state decide to maintain her troops in Haiti despite the defense minister’s opinion to the contrary, this may put Rousseff at odds with other key members of her cabinet, as well as with the military’s leadership. Furthermore, a recent letter to the Brazilian President was signed by a number of legislators, like Markus Sokol of the PT (Partido dos Trabalhadores – Worker’s Party) National Directorate, representatives of the CUT (Central Única dos Trabalhadores – Unified Worker’s Central) and the MST (Movimento dos Trabalhadores Rurais Sem Terra – Landless Workers’ Movement) , as well as others. The open letter states: “we must end Brazil’s participation in a military operation that is repudiated by the vast majority of the Haitian people … this occupation has only deepened the plight of the people and has denied them their sovereignty.”[8]



It is worth noting that some influential Brazilians do support a continued presence in Haiti. Geraldo Cavagnari, member of the Center for Strategic Studies at the University of Campinas (Unicamp) has declared that “the troops should stay put because there is no risk, and there are many things in play.”[9] The other “many things” most likely include Brazil’s hardly concealed quest for a permanent UNSC seat.



Another factor that may influence the future role of Brazil in Haiti may be budgetary issues. An August 15, 2011 article entitled “Bye Bye MINUSTAH” published by the Canada Haiti Action Network,[10] explains that since 2004, Brazil’s taxpayers have spent over R$ 1 billion on MINUSTAH. Last year alone, maintenance of the Brazilian troops in Haiti cost R$ 426 million: R$ 140 million for annual costs and other expenditures, plus R$ 286 million for humanitarian aid sent after the 2010 earthquake. The analysis goes on to argue that in principle, the UN should reimburse these expenses, but in recent years the reimbursements have amounted to only 16% of the payments made by the Brazilian government. The article finally adds that, in addition, the salaries of Brazil’s MINUSTAH troops have, in fact, exceeded R$ 41 million per year, but these costs are excluded from Brazil’s expenses on the mission because these individuals would be entitled to their pay even if they were in Brazil. The Portuguese-speaking nation is currently enjoying an economic boom, but this will most likely not last, in part because the Brazilian currency, the real, is showing signs of being overvalued. If a period of economic austerity appears, the Brazilian government may be forced to rethink some of its peacekeeping operations and other major military commitments.



An official interviewed by the author, who wished to remain anonymous, explained that Brazil as well as several other states have desired to leave Haiti for some time and they argue that there is already some kind of, at least superficial, political stability in the Caribbean state. It would seem that the recent Haitian presidential elections, as dubious and controversial as they were, may serve as part of Brazil’s “exit strategy” for leaving MINUSTAH.



An Unsuccessful Departure?



Brazil’s military has been involved in Haiti since 2004 but, unfortunately, few positive developments have stemmed from Brazil’s limited interactions in the small Caribbean nation. MINUSTAH operations managed to pacify most violent neighborhoods, like Cite Soleil in 2005, but they also were responsible for carrying out human rights abuses that have been well- documented, which gained further criticism of the UN operation.



A critical moment occurred on January 12, 2010, when a 7.0 magnitude earthquake destroyed most infrastructure in Port- au-Prince as well as other Haitian towns across the country. A recent report by the U.S. Agency for International Development, obtained by the Miami Herald, states that between 46,190 and 86,961 people died and less than 66,625 quake victims are living in hundreds of camps scattered around the capital.[11] In the aftermath of the disaster, dozens of international governments agencies and relief organizations have poured into the country to help with search operations and to take care of the thousands of Haitians that were left homeless and with very little food and shelter. MINUSTAH was not spared of some of these losses. This was particularly the case as the mission’s headquarters in Haiti collapsed killing several UN employees;[12] however the body did continue to carry out relief operations. A February 2010 UN report praised MINUSTAH’s emergency response, explaining that “MINUSTAH, despite its own losses, acted as a crucial first responder, opening the major arterial road from the Port-au-Prince airport to the town centre, re-establishing communications and opening its medical facilities to victims.”[13] The Security Reform Resource Centre adds that:



“In the months following the earthquake, MINUSTAH made significant contributions providing logistical and administrative support to relief efforts. MINUSTAH supplied security assistance for humanitarian operations, operational support to the Haitian National Police (HNP), provided technical advice and support to state institutions at the sub-national level, assisted in repairing the damage to critical infrastructure of the judiciary, and coordinated a large-scale public information campaign.”[14]



In any case, the praise MINUSTAH received for its operations in the aftermath of the 2010 earthquake proved to be short-lived. In October 2010, MINUSTAH troops apparently introduced a cholera epidemic in Haiti by dumping fecal matter into the country’s rivers. Over 5,000 individuals have died due to the cholera outbreak and thousands more are infected. A March 2011 report by the BBC highlights the variety of estimates of how many Haitians currently are, and could possibly become, infected, with numbers ranging from 400,000 to a possible 779,000 by November of this year.[15] A July 2011 article in the Los Angeles Times reported that “the [Haitian] Health Ministry reported more than 1,000 new cholera cases a day last month [June].”[16] There were several protests against MINUSTAH when the local population realized how the epidemic started.[17] It is important to clarify that it seems that UN peacekeepers from Nepal most likely started the cholera epidemic, not personnel coming from Brazil.



Furthermore, it is necessary to note that a possible Brazilian withdrawal from MINUSTAH is just an option for the moment, and it would take time for the minister Amorin’s proposal to become an official government-sanctioned plan, if it does at all. Even more time would be needed to arrange the logistics for the Brazilian troops to actually leave Haiti; hence any Brazilian departure will not likely occur anytime soon.



MINUSTAH without Brazil?



Should Brasilia decide to pull all of its troops from the Caribbean nation, the future of MINUSTAH may be called into question. Can the mission survive without the major donor of its troops, and the one with the most zeal to do so? Possibly yes, but the UN will face several new problems, like finding replacement troops from other nations to make up for the departure of the Brazilians. In addition, if Brazil does depart, other states that supply troops to MINUSTAH, may decide to leave the operation as well. As previously mentioned, some states, besides Haiti, may already be looking for an exit strategy to leave that country. In an extreme scenario, MINUSTAH may end up with a reduced force and a more limited ability to carry out its operations.



A final critical factor that may affect MINUSTAH’s future will be the Haitian government, which now has a new president, if highly problematic, former singer Michel Martelly. As part of his campaign promises, the new head of state has declared his interest in reforming the controversial Haitian army to help improve internal security. The country’s military was disbanded in 1995 by President Jean-Bertrand Aristide, after he was deposed in a coup and then restored to power with the help of U.N. forces.[18] Historically the Haitian army has been known for its violent acts and lack of political neutrality, particularly under the Duvalier dictatorships. An April 2011 article in the Washington Post quotes Martelly as saying that “the new armed forces wouldn’t be known for brutality, as their predecessors were.”[19] The Haitian leader may be looking to replace MINUSTAH, which it cannot control, with local security forces sworn to comply with his orders.



If Brazil leaves, what role should the US play?



A 2008 State Department document made public by Wikileaks, explains that “the UN Stabilization Mission in Haiti is an indispensable tool in realizing core USG [U.S. government] policy interests in [that country].”[20] The disclosed report then adds “paying one-quarter of MINUSTAH’s budget through our DPKO [department of peace keeping operations] assessment, the U.S. reaps the security and stabilization benefits of a 9,000-person international military and civilian stabilization mission in the hemisphere’s most troubled country. […] in the current context of our military commitments elsewhere, the U.S. alone could not replace this mission.” With military operations in Iraq, Afghanistan and, for the time being, in Libya, embarking on a series of new military challenges, even if it’s under an UN-peacekeeping mantle, may prove too costly for Washington and particularly the Barack Obama administration, which will have to face re-elections in 2012.



MINUSTAH has been controversial since its origins, and a more visible U.S. involvement in Haiti would be cumbersome and would add to a long list of lamentable military involvement in that country. U.S.-Haitian relations have been historically problematic, as they mostly revolve around American military operations in that island, including from 1914-1934, in 1994 and, most recently, in 2004 when Aristide was ousted. It is necessary to note that Washington did deploy the carrier USS Carl Vinson [21] along with the USNS Comfort and thousands of military personnel[22] to provide help in the aftermath of the 2010 earthquake.



Deploying American troops in Haitian territory is a questionable practice, and it’s highly unlikely that it will happen; nevertheless it would be helpful for Washington’s national interests to continue working with the UN and the Haitian government so that the Caribbean nation avoids becoming a failed state.



Regarding Brazil, one can see the reasons for leaving the mission, including its unpopularity, lack of major successes and financial costs. With that said, it is illogical to think that any departure would occur quickly. If Brasilia does decide to leave MINUSTAH, at the very least it should have a responsible exchange of power and responsibilities to other UN personnel or Haitian security forces. As a recommendation, we can observe that while most of Brazilian military personnel will ultimately leave Haiti, some senior officers should stay in a consultancy basis, particularly in order to keep training the Haitian police. In spite of MINUSTAH’s controversial origins, we cannot forget Haiti’s internal problems (some of which were collectively caused by foreign powers); the international community hopefully should leave the country in better shape than when it entered it.



Alex Sanchez, a COHA research fellow, recently published an article discussing Brazil’s UN ambitions and its role in MINUSTAH: W. Alex Sanchez, “An Easy Way to Improve U.S.-Latin American Relations” (Washington, DC: Foreign Policy In Focus, July 28, 2011). Available: http://bit.ly/qXB41y. In addition, an article that discusses Brazil’s role in MINUSTAH and the UN mission in East Timor will appear in an upcoming issue of the journal Globalizations. His personal blog can be found here.



References for this article can be found here.



The Council on Hemispheric Affairs, founded in 1975, is an independent, non-profit, non-partisan, tax-exempt research and information organization. It has been described on the Senate floor as being "one of the nation's most respected bodies of scholars and policy makers." For more information, visit www.coha.org or email coha@coha.org


August 30, 2011


caribbeannewsnow

The rebellion against Christianity

"The spirit lusteth against the flesh and the flesh lusteth against the spirit."


Do you know it is vogue to be an atheist on university campuses? Do you know that every young person finds it interesting, modern and attractive when a professor or student says, "I don't believe in God" or "God doesn't matter." There is only one God, whether we be Muslim, Buddhist, Hindu, animist. "God is the same for all religions and, therefore, Christianity is neither here nor there," our modern intellectuals would say.

There is also a popular sophisticated agnosticism which says, "I don't know if there is a God or not; it doesn't matter, we just need to live our lives passionately."

How can I deny an inner yearning, a deep desire, sometimes a desperate desire to kneel and bow before the almighty God and simply cry out: "I place myself before you, Almighty God. I know that I am nothing." Sometimes in exultation, sometimes in desperation, but always we want to submit ourselves to the almighty God as sinners, or, as someone yearning deeply for meaning. There are times we feel empty in this lonely and selfish world of ours, but better that than giving into the world.

Christ shows the way

Christ, the incarnate God, revealing the Father's will in the flesh, serving others, forgiving sins, performing miracles, dying on the cross, restoring the brokenness of our nature, loving us and calling us to repentance and to His heavenly Kingdom, suffered rejection and death as he fixed his attention on us, of His infinite love. He shows the way in an absolute world of absurdity, while we journey to the light and everlasting life.

There is a rebellion against the Church and Christianity in our modern times. We are like sheep who have gone astray. Many of us, pastors and shepherds, have lost the central focus of life, which is Christ.

There is also the media's lack of respect and its infinite variety of pagan values and pleasures. This flesh is always crying out to be satisfied. The vulgar part of us wants everything for me, my flesh, my popularity, position and prestige, rather than the spiritual desire to be one with the eternal God.

We no longer believe in the divine, the transcendence of God, and the longing of our spirit, our souls, to go beyond ourselves. Our materialistic and hedonistic flesh wants no moral mandates or restrictions. We want to be free, we want to be on our own, we want to do what pleases us.

Happy with atheism

Christianity - and its call (if it is the true brand of Christianity) - do not go along with the craving for self-fulfilment of every appetite. The market, or the world, is happy with atheism, individualism, and self-satisfaction. Thus, it needs to destroy Christianity and free us to live a hedonistic life.

We cannot continue feeding this valley of the flesh that Europe and North America seem to be encouraging all over the world, taking advantage of the poor countries and their naïve trust of rich countries which propose self-indulgent ways of living to be progressive.

The restlessness of our worldly appetites will only bring about death. We want to destroy the babies in the wombs, the old people, the people who are defective (by some people's definition), the poor and the non-productive people our world.

Wealthy, advanced persons of our world haven't been able to solve the problem of poverty. The rich must kill off the poor in order to eliminate conscience problems.

Yet, the call to self-sacrifice and service shall not stop. Christ, the crucified one, the one true God, the only God of all gods, who lived, suffered, and died for us remains indelibly on our souls, an everlasting image stamped in the very depth of ourselves, forever and ever.

The atheistic, materialistic world finds Christ dangerous. Today, He is ridiculed and mocked in movies, the general media, and the fuzzy-headed arguments at the universities and in our homes. But His word and His ways are firm: "I am the living bread of life: without me you will die."

We might rebel for a while but, finally, we must face up to the truth: "I am the way, the truth, and the life."

Father Richard Ho Lung is founder of Missionaries of the Poor Jesuit charity.

August 29, 2011

jamaica-gleaner

Bahamas Blog International

Post-Gaddafi, is Cuba next?

By David Roberts





As the Gaddafi regime appears set to crumble in Libya, perhaps now is as good a time as any to reflect on Latin America's last remaining dictatorship - Cuba.

There are more than a few similarities between the two regimes. Both are led by highly charismatic - some may say deluded - personalities in the form of Muammar al Gaddafi in Libya and, in the case of Cuba, Fidel Castro, who has largely given way in his old age to his slightly younger and much duller brother Raúl. Both the Libyan and Cuban systems of government claim to be socialist, in one guise or other, and both have lasted for decades, in part thanks to a brutal security apparatus. Both have also irked and confronted the liberal, democratic and capitalist west, and above all Washington, over the decades, in the case of Libya using terrorist tactics to do so.

In addition - and evidence of this has been seen in the Libyan conflict in recent months - both clearly have a significant degree of support among their respective peoples, although whether it was ever a majority is another matter. There are of course good reasons why the two regimes have enjoyed a degree of support. Gaddafi has used Libya's oil wealth over the years to make the country one of the most developed in the region, and also counted on the backing of his own tribe, while the Castro-led revolution overthrew a despised, pro-US dictator, winning the admiration of leftist ideologues around the world, and the subsequent regime has, despite its faults, made considerable progress in areas such as healthcare and education.

So why has one been brought to its knees while the other appears to be standing firm? There has, of course, been much speculation - often wild and unfounded, disguised as analysis - as to the real causes of the Arab uprisings, including poverty, corruption, cronyism, governments that simply don't care about their people and, at least the western world would like to believe, a genuine desire for democracy, all helped along by the use of social media. But one thing is clear, which is that no one foresaw what was coming and the governments that have been toppled or have come close to being toppled from Tunisia to Bahrain, all looked pretty secure less than a year ago from today. Just like Cuba right now.

So could the same thing happen in Cuba? Yes, of course it could. Many ask why don't the Cuban people rise up against the tyrants and demand their rights? Or how can people be so passive in the face of such tyranny? Yet the same could have been said all across North Africa and much of the Middle East until just a few months ago.

These things may not be predictable, even by the most astute of the so-called experts and analysts, but the important thing - whether we're talking about Libya today or Cuba tomorrow - is to be as best prepared as possible for a change, both the domestic opposition and the international community, to help ensure that mistakes of the past are not repeated and that what replaces the current regime is a big improvement on the old order, preferably with something resembling democracy. In the case of Libya, that includes not destroying the infrastructure developed by the Gaddafi regime, or "punishing" people for having worked for the government - and avoid letting the country fall into chaos like what happened in Iraq - and in the case of Cuba it would mean not reversing the gains made in health and education, among other things.

bnamericas

Bahamas Blog International

The war is on: The battle for Trinidad and Tobago

By Rebecca Theodore



A state of public emergency exists in the twin-island republic of Trinidad and Tobago. It includes the power to search and seize without a warrant and powers of arrest and detention by police officers and soldiers. Persons should not have in their possession materials or documents which are likely to lead to a breach of the peace. Persons are also prohibited from making statements that are prejudicial to public disorder.

Yes, “the war on crime is on,” declares attorney general Anand Ramlogan. The recent occurrence of 11 murders in one day bears the scars for immediate action. The air is filled with fear. Blood stains the alleyways. Distant screams haunt the night as mothers wail over the loss of their sons and daughters. Streets lay empty and bare while starving dogs fight over misplaced men's meat and children's bones. “Indeed!” laments the passer-by, “crime has besieged the consciousness of our nation.”

This is the new Trinidad and Tobago. This is the land of hope and glory and the sweet black trinity that calypsonian Sparrow sang about. This is the oil rich republic that historian Dr Eric Williams defended to his dying breath. This is the unrecognizable land mired in chaotic and contradictory fury, held hostage by a pillaging group of thugs and gangs, who are rewriting its history to reflect their own morbid view of reality.

And now the only choice left is to pay careful attention to the criminal element that exists within the very ranks of the police service, the army and other government departments.

Trinidad and Tobago was placed on a Tier Two Listing by the International Organization for Migration (IOM) and the US Department of State as early as 2010. As the most active country of origin and transit point for regional and extra-regional irregular migration to North America and Europe, Trinidad and Tobago was warned about the vulnerability of its borders to transnational organized crime networks and the risk of being exploited by terrorists and murderous drug lords by its own immigration officials and security personnel.

But this warning fell on deaf ears.

According to the US State Department, the regular presence of small cargo fishing boats (pirogues) from Venezuela and other Caribbean islands, loaded with drug shipments, continue to go unnoticed because security forces do a poor job of screening maritime traffic and who many times have been paid large sums of money to remain quiet.

Gangs loyal to political parties or to the police garner more respect than law abiding civilians. Victims of police brutality go by unmentioned. Institutional dysfunction allows violence to continue into escalation of gang warfare.

A state of emergency at this late stage of the game, after the criminals have long been given notice by interior forces to leave the hotspots and go underground allowing them to set up new cells and safer havens, comes as a laughing game.

Now attorney general Ramlogan, national security minister John Sandy, acting police commissioner Stephen Williams and chief of defence staff Brigadier Kenrick Maharaj are at their peak in going after gang members, circulation of firearms and drug traffickers and are bidding to get as many weapons as possible off the streets.

But this action comes a bit too late.

Rather than embrace their responsibility of sweeping out corruption within their own ranks, prime minister Kamla Persad-Bissessar has instead chosen to incite fear and confusion in the minds of the citizenry and visitors alike by instigating a state of emergency, while the very creed of national security and all its code of ethics of the public service are being ceaselessly undermined by the corruption of its own immigration officers, police officers, military personnel and some of its notorious elites.

Abuse of immigration stamps, issuance of birth certificates, bribery and government passports to foreign nationals, has failed to ensure immediate actions into tabling legislation to deal with the problem of human smuggling and trafficking, hence inciting a free reign to make a mockery of justice by deflecting responsibility back to the very system that failed in the first place.

Critics argue that the state of emergency curtails the freedom of citizens, suspends the public’s constitutional rights, deprives citizens of their human rights and scares investor confidence. The rhetorical and inflammatory call to action for a state of emergency repels the root of the problem and favours the murderous gang lords more than the citizens and does not equal a platform for change.

Simply stated, the criminal element in Trinidad and Tobago lies in weak legislation and lax border controls to corrupt immigration officials, and police and security personnel operating from within.

The unrivaled moral task of saving Trinidad and Tobago, while at the same time safeguarding the lives of its citizens from the destructive effects of crime, sits evenly with co-operation and intelligence sharing between Trinidad and Tobago, and US officials.

August 27, 2011

caribbeannewsnow

Bahamas Blog International

Money, money, money: Remittances and microbanking in Haiti

by Jennifer Nerby, COHA Research Associate



Haiti, along with the greater Caribbean, has experienced a substantial decline in remittances following the 2008 global economic crisis. Fortunately, remittance flows to Haiti increased significantly in the aftermath of January 2010’s earthquake. That year, Haiti received USD 1 billion in relief funds, with a significant portion coming from the Haitian diaspora.[1] While these contributions helped many individual Haitian families to recover from the devastation, it is demonstrably clear that remittances do not pose a long-term solution for the country’s economic woes. In spite of relatively high remittance rates, Haiti suffers from pervasive unemployment. Many small island specialists seem to feel that only growth in small businesses and microlending operations can stimulate an independent and self-sufficient Haitian economy.


The Quake


On January 12, 2010, a 7.0 magnitude earthquake struck ten miles west of the Haitian capital, Port-au-Prince, leaving over three million people in need of emergency assistance.[2] The earthquake displaced at least 1.3 million people, and as of January 1, 2011, an estimated 810,000 remained in the 1,150 refugee camps still in operation.[3],[4] That same month, Nigel Fisher, the United Nations Humanitarian Coordinator for Haiti, commented, “In retrospect I think we can say that by and large the initial response to the earthquake was a success.”[5] Remittances were a critical component of the total relief efforts; more than one million members of the Haitian diaspora increased the amount of money they send to relatives in Haiti after the calamity, resulting in a USD 360 million surge in remittances during 2010. World Bank economist and remittance expert Dilip Ratha explains that, “Financial help in the form of remittances from family members is always the first to arrive in times of distress.”[6] Though remittances provided much needed support to the earthquake’s survivors, it is unclear if these funds will permanently reduce poverty and bring about necessary infrastructural change.


The Remittance Debate


Like many Caribbean nations, Haiti depends on remittances as a fundamental component of its national GDP ratings. According to the World Bank, migrants hailing from Latin American and Caribbean nations (LAC) sent a total of USD 48.3 billion to their home nations in 2005, and remittances represented 70 percent of all foreign direct investment to the region in 2004.[7] In Central American and Caribbean nations, remittances typically account for 10 to 20 percent of each nation’s GDP.[8] Haiti, however, is a special case; it dramatically surpasses the average ratio, with remittances accounting for 52.7 percent of the nation’s GDP in 2004.[9]


Remittances do not necessarily solve pressing economic, political, or social issues in the Caribbean. In a 2007 paper entitled “Close to Home: The Development Impact of Remittances in Latin America,” World Bank senior economists Humberto López and Pablo Fajnzylber examine the positive and negative effects of remittances. Although the authors acknowledge that remittances often stimulate growth and investment, improve access to health care and education, and increase macroeconomic stability and individual savings, they question the effectiveness of remittances in decreasing poverty and instability in recipient nations.[10] These contributions are subject to the financial standing of individual immigrants in developed countries and often prove inconsistent, as evidenced by the stagnation of remittance flows following the inception of the global financial crisis of 2008.


The Crash


The global economic crisis of 2008 caused an abrupt decline in remittances worldwide, doing grave damage to many Caribbean economies. Looking forward, a variety of sources anticipate substantial increases in remittances to the Caribbean during 2011 and 2012 as developed economies recover from the 2008 crisis. Nine of fifteen Caribbean countries were expected to grow in 2010, but Haiti, along with five other nations, was predicted to contract significantly.[11] This regression is largely related to a 12 percent decline in remittance rates during 2009, as Haiti was found to lack the domestic industries required to recover without international aid. The Outlook for Remittance Flows report anticipated that a two percent growth in remittances to Latin America and the Caribbean should be expected in 2010, and the World Bank reported that a “healthy recovery” was underway from the slump of 2009.[12] Furthermore, the Outlook anticipated 7.6 percent growth for 2011 and 10 percent growth in 2012, totaling USD 69 billion in remittances allocated to the Caribbean. Haiti is scheduled to be one of the top three recipients of such funds.[13]


While high remittance rates have at times accounted for legitimate economic benefits, local business development in Haiti has been dwindling as a result of the nation’s dependency on international donations. Much of Haiti’s reliance on remittances can be attributed to the nation’s high rates of unemployment, which reached an astronomical 40.6 percent in 2010. The CIA World Factbook noted that two-thirds of the population did not hold a formal job and ascribed the lack of foreign investment in industry to Haiti’s “limited infrastructure and a lack of security.”[14] As a result, remittances have been found to create a vicious cycle of dependency on international donations coming from abroad. The escalating presence of microbanks as a major financial tool has led to the growth of small businesses and local industries, conceivably replacing remittances as the backbone of the Haitian economy.


Microlending


Unlike remittances, microlending initiatives retain the potential to tackle Haiti’s weak infrastructure and unemployment. Fonkoze, one of Haiti’s most prominent for-profit microbanks, has forgiven more than ten thousand loans after the earthquake and continues to play a crucial role in the recovery process. The bank also expanded the “Ti Kredi,” or “Little Credit,” loan program to offer small loans of USD 25 to poor families who did not qualify for the bank’s larger USD 125 loans. “Ti Kredi” includes shorter repayment periods as well as health care and educational services.[15] Fonkoze’s programs present borrowers with the economic opportunity to open small businesses, along with the critical skills to manage them successfully.


Thus far, microbanks have been one of the most effective relief agencies in Haiti and have been found to have the potential to enact enduring and progressive change in the region. Greta Greathouse of the United States Agency for International Development (USAID) believes that Haitian microbanks “need to get stronger on a permanent basis so they can offset the operational risks that come with Haiti because of the earthquake and the inherent risks that are unfortunately a way of life for the country and its people.”[16] A debilitating lack of infrastructure prevents many microbanks from becoming self-supporting and for-profit, as international contributions are often needed to cover losses from missing and delayed loan payments. Strengthening the Haitian banking industry will require improved regulation and a gradual shift toward for-profit banking.


Most microbanks in Haiti remain non-profit and consequently require international assistance to recompense for unpaid loans. Non-profit banking, while more sustainable and autonomous than remittances, lacks the financial transparency of for-profit institutions.[17] Fonkoze is one of the few for-profit institutions in Haiti and had to operate at a loss for nearly three years before it was able to turn a profit. The microbank eventually stabilized thanks to USD 15 million in foreign donations.[18] Though the bank initially depended on international contributions, Fonkoze is now en route to self-sufficiency and provides many Haitian borrowers with the opportunity to open and operate independent businesses.


Conclusion


The microlending climate in Haiti is far from ideal. Fonkoze nearly closed in 2008 due to losses from a destructive hurricane season, and more than 50 percent of borrowers with the major microcredit group Finca Haiti missed payments after the 2010 earthquake.[19] The impoverished Caribbean nation is no stranger to natural disasters, and its dependence on foreign aid automatically entails a delay in relief efforts. The development of sound local emergency relief programs will enable Haiti to respond quickly and efficiently to crises without having to wait for foreign assistance. As more Haitians turn to microbanks for loans, the need to secure and regulate the banking industry grows ever more pressing. While some regulation efforts have been undertaken, it is still necessary to guarantee that Haitian microbanks are able to survive natural disasters and economic downturns like that of 2008.


Both remittances and microbanks have been vital to Haiti’s recovery since January 2010. Remittances offer a temporary solution to a greater economic problem. With improved regulation and security, microbanks can revolutionize the Haitian infrastructure and employ millions of jobless citizens. As in Fonkoze’s case, initial international investment will be necessary to financially secure Haitian microbanks, but the eventual autonomy of these institutions could be a remarkable game-changer for the Haitian economy.




The references for this article can be found here.





The Council on Hemispheric Affairs, founded in 1975, is an independent, non-profit, non-partisan, tax-exempt research and information organization. It has been described on the Senate floor as being "one of the nation's most respected bodies of scholars and policy makers." For more information, visit www.coha.org or email coha@coha.org

August 25, 2011



caribbeannewsnow

Bahamas Blog International

Bahamas: Hurricane Irene could potentially fuel the dengue fever outbreak says Minister of State for the Environment Phenton Neymour

Neymour: Hurricane Irene could impact dengue fever outbreak

By Krystel Rolle
Guardian Staff Reporter
krystel@nasguard.com

Nassau, The Bahamas

Hurricane Irene could potentially fuel the dengue fever outbreak, according to Minister of State for the Environment Phenton Neymour.

He explained that the system could impact the government’s response to the outbreak.  However, the minister added that the storm could also help the government get a handle on the outbreak.

“The ministry is concerned because the hurricane is coming —  not just because it’s a hurricane but in regards to the dengue outbreak,” Neymour said.

“There are positives and negatives to a hurricane in that if there are high winds, the winds may blow the mosquitos away and not allow them to reproduce.  It could also assist in the further outbreak in that regard.  So a hurricane could assist but at the same time it offers challenges with fogging exercises.  The high winds may impact fogging.”

On its current path, the eye of the storm is expected to pass over New Providence between tomorrow and Thursday morning.

Minister of Health Dr. Hubert Minnis told The Guardian yesterday that more than 3,000 people have contracted the virus to date.  However, he noted that not all of the persons who have dengue fever received medical attention and therefore would not have been added to the count.

And with the health care facilties already inundated with patients, any increases in the dengue fever outbreak could further strain the public resources.

However, Dr. Minnis said the Ministry of Health is preparing for that eventuality.

“Though we may have strained resources, we find that opening the clinics on the weekends specifically for dengue cases is very, very helpful in reducing the burden,” he said.

The South Beach and Fleming Street clinics are open on weekends for dengue cases.

“If the need arises we would do what is necessary.  If more clinics need to be opened we will make them available.  We are finding that our policies are working, and the staff is performing well.  So we will continue on this track.”

Minister Neymour said the Department of Environmental Health is also prepared to expand its fogging exercises.

In the meantime he said heavy fogging exercises will continue.

However, he advised residents to continue to empty containers around their homes, especially after bouts of rain.

Dr. Minnis said residents should also spray their homes and businesses with mosquito repellents during closing hours as an extra precaution.

He said all medical facilities are being sprayed to avoid contamination.

The Aedes aegypti mosquito is responsible for the spread of the virus.  Fever, muscle pain, eye pain and headaches are some of the symptoms associated with the virus.

People with mild symptoms are being asked to treat themselves at home by getting rest, drinking fluids and taking medicines such as Panadol or Tylenol.

Aug 23, 2011

thenassauguardian

Oswald Moore, chairman of the Bahamas Petroleum Dealers Association's (BPRA) says: The Bahamas petroleum sector should be deregulated and the Government-imposed margin/price controls removed

Gov't urged to end petroleum sector margin controls

By NEIL HARTNELL
Tribune242 Business Editor
Nassau, Bahamas



A leading petroleum retailer yesterday agreed that the sector should be deregulated and the Government-imposed margin/price controls removed, telling Tribune Business that no further strike action was currently being contemplated.

Oswald Moore, chairman of the Bahamas Petroleum Dealers Association's (BPRA) margin relief committee, told this newspaper in the wake of Friday's meeting with Prime Minister Hubert Ingraham that allowing gas stations and the oil companies to compete, and the market to set the per gallon price of gasoline and diesel, provided the best way forward for the industry.

"Yes, I would agree with that," Mr Moore responded, when asked by Tribune Business whether the Government should get out of imposing price controls on the petroleum industry.

"Most of the countries around us have already done that. Because they compete, they set the price in the marketplace."

Mr Moore said the current situation facing BPRA members was "impossible", adding: "We have been subsidising the industry now for a long time - for the past three-plus years."

Asked whether many Bahamians might question why petroleum dealers remained in the business, given the obvious difficulties in making a profit, Mr Moore replied: "Yes, they can wonder that, but when you consider the number of people who have mortgaged their homes and so forth to survive, they cannot walk away from it like that."

The crux of the issue is that gas station dealer margins, fixed at $0.44 per gallon of gasoline and $0.19 per gallon of diesel, are expected to not only generate a profit but cover rising fixed costs, such as labour, electricity bills and the various fees payable to the oil companies - rents, royalties and franchise fees and the like.

These rising costs have outpaced the fixed margins, a problem compounded by increasing oil prices. When the latter rises, Bahamian petroleum dealers are forced to turn to credit - cards, overdrafts, mortgages, bank loans and such like - to pay for their next fuel consignment, as the revenue streams earned on the previous, lower-priced inventory, are insufficient to cover the cost.

To compensate, BPRA members have been seeking a $0.30 increase in the per gallon of gasoline margin to $0.74, up from the existing $0.44 per gallon. On diesel, they were pushing for a $0.28 per gallon margin increase to $0.47, up from the existing $0.19. These were effectively 68 per cent and 147 per cent increases, respectively, in the gasoline and diesel margins.

However, the Prime Minister told Mr Moore at a Friday meeting that the Government, fearing the effects of a margin increase on the private sector and already-burdened consumers at a time of economic weakness and already-high gasoline prices, was not currently prepared to grant the BPRA's request.

The BPRA had previously indicated that failure to grant the margin increases would result in its members taking strike action, but this option appears off the table - for the moment.

"We are not looking at further strike action at the moment," Mr Moore told Tribune Business. "We think the Prime Minister's announcement was positive, and we will continue negotiations."

Mr Ingraham extended several 'olive branches' to the BPRA, according to a release from the Cabinet Office, promising that the margin increase request would be revisited once global gasoline and diesel prices reduced.

And the Government will also establish a Commission to assess gas station dealer complaints about alleged high operating costs, and other practices, imposed upon them by the three major oil companies - Esso, Texaco and FOCOL Holdings (Shell).

"I think it's something that needs to be done, but I don't want to say anything more about it at this time," Mr Moore said of the Commission.

Rents, royalties and franchise fees paid by dealers to the oil companies have long been a source of contention. Given that these payments come out of dealers' $0.44 and $0.19 per gallon margins, the argument has been that the wholesalers - the oil companies - actually earn more per gallon than their own $0.33 fixed margin.

But, more interesting perhaps, was that the Cabinet Office statement left the door open to deregulating the Bahamian petroleum industry, saying "a revision of policies" could ultimately lead to this happening.

Apart from Mr Moore, such a move was also backed by former Bahamas Chamber of Commerce president, Dionisio D'Aguilar, who urged that the Government and politics be removed from price control regulation of the sector.

"It's so silly and stupid the system they have in place because you have to go back to the Cabinet, and once you put the decision in the hands of politicians, it's a no-win for them," Mr D'Aguilar told Tribune Business.

"For them to give a price or margin increase, they will be accused of taking money out of the hands of the poor man and putting it into the hands of the gas dealers.

"As a result, the politicians are scared to make a decision to put up gas margins. You know this is exactly what is going through their brains. This is a politically horrible decision for them to make, and petroleum retailers thus become a victim of politics......

"This is why the process should not be in the hands of the Cabinet of the Bahamas. It's a no-win situation for them.

"The only way petroleum retailers can get a decision is by screaming and carrying on."

Urging the Government to "get out of making" decisions on gasoline margins, Mr D'Aguilar said this power should either be transferred to a body similar to the Utilities Regulation & Competition Authority (URCA), or a formula for small, annual increases established.

"They should set up a mechanism where margins increase according to the rate of inflation, or they are put up by two cents a year. If you went up one or two cents a year, no one would notice it," Mr D'Aguilar told Tribune Business. "Then you could review it, and come up with a mathematical formula in a systematic way.

"Work it out, make a decision and move on, so we don't have to come back to this."

August 22, 2011

tribune242

Bahamas Blog International